RETAILER WH Smith has announced a sharp drop in full-year profits.

But successful book titles such as Kate Adie's autobiography, the Kindness of Strangers, and the latest Harry Potter instalment, helped boost book sales in the second half.

The group, one of the many retailers this year to see business hit by the summer heatwave, also said tough competition and the downturn in the travel market during the 12 months to the end of August had contributed to falling profits.

Sales in the six weeks since the end of August were also flat compared to the same period last year.

Outgoing boss Richard Handover, who is to be replaced by Kate Swann later this month, said the new financial year had started with extremely testing trading conditions, amid intense competition.

While underlying profits were down 13 per cent to £102m during the year, one-off costs, primarily associated with the disposal of loss-making operations in the US, dragged profits down 38 per cent to £52m.

After a poor Christmas, WH Smith's 677 UK stores had a disappointing year, with music sales affected by cheap supermarket CDs and airport branches hit by the downturn in travel in the run-up to the Iraq war.